Skip to main content

tv   Your World With Neil Cavuto  FOX News  December 26, 2012 1:00pm-2:00pm PST

1:00 pm
that's the sister of its founder. mark zuckerberg's sister sent out furious messages on twitter after they posted a private family picture that spread out on the web. the incident coming after complaints triggered facebook to better explain its privacy settings but it seems zuckerberg's big sis never just quite got the memo of how it works. i'm trace gallagher, that's it for "studio b." harris faulkner is back later. if your christmas shopping with your 401(k), it's down a little bit. have a great post christmas. eric bolling is in for neil. a massive winter storm wreaks havoc bringing blinding snow and devastating tornadoes.
1:01 pm
at least six are dead, over a thousand flights canceled nationwide stranding holiday travelers and worries things could get worse. welcome, i'm eric bolling in for neil cavuto and this is your world and we're tracking a deadly winter storm as it makes its way towards the east coast. in indiana, heavy snow stranding dozens of vehicles as folks deal with blizzard. a foot in bloming to know. across the south and southwest 34 twisters leveled homes. in mississippi for than 25 people injured and 70 homes damaged. that number expected to rise. the storm knocked out power to more than 200,000 homes and businesses and if you're trying to fly home after the christmas visit, you could be out of luck. more than 1,000 flights already canceled today and we're all over it with joe flavin in a snowy indianapolis. mike tobin is at o'hare and
1:02 pm
maria in the fox weather center. we begin with joe, what's the latest? >> we're here on the south side of indianapolis, and we've actually just had the main part of the storm blow through. the storm is pretty much done but we're having trouble with winds. we're along the side of one of the busier interstates, i-65 through indianapolis north and south to chicago and louisville. the traffic getting by quickly but we drove through this earlier today in the bulk of the day and there were a lot of cars off the road. a lot of people on the day after christmas who wanted to get out, get home, got on the roads and it was so bad, they could barely move and a lot were sliding off. to give you an idea, now the snow that i'm in now not too deep, not as much as in southern indiana but 9 inches around indianapolis. we had a situation near our live shot a semi truck got stuck next
1:03 pm
to us. this is what we're dealing with now in the area, just so much snowfall and it was so bad during the day they couldn't get any of it out. right now the roads still dangerous in this area and we'll see a lot of clean up in the indianapolis area. >> thank you very much. the storm now barreling towards the northeast to maria in the fox news weather center with the latest. jill pointed something important out. on the backside of that storm, cold weather behind it. >> we have temperatures right now in the single digits and teens across the midwest, minnesota and dakotas so temperatures are cold, even in areas where we're not experiencing winter weather but the storm has everything. it has severe weather, reports of tornadoes and unfortunately that -- a lot occurred across areas in the south on christmas day. people had their homes damaged and we have reports of many
1:04 pm
injuries and fatalities from the same storm system headed northeast. many messages you just saw out of indiana are what you'll see in pennsylvania, upstate new york and new england through the overnight hours and also as we head into tomorrow. the storm system very powerful and bringing a punch. the good news as far as tornadoes is the threat is starting to diminish. we had a tornado watch still in effect until 5:00 p.m. eastern in extreme eastern north carolina and south carolina but it's winding down. snow in indiana winding down. we had blizzard warnings in effect. they've expired but the one across ohio here are very much in effect. we have strong winds gusting to 30, 40 miles an hour producing whiteouts. not recommended that you're on the roads right now and of course a blizzard warning in effect across northern parts of the state. the pink shading are winter storm warnings in effect across the state of ohio and all across
1:05 pm
portions of the northeast. you can see the whiteouts in cleveland where easily we could see over a foot of snow in that city and that's going to be the story in pennsylvania, upstate new york and portions of new england. if you live along the coast, new york city could see a slushy coating but not as bad. an inch or two in anything. areas that do not see a winter storm warning are looking at heavy rain. eric, gusts here on coastal areas could reach 60 miles an hour, so that's a huge concern. >> a lot of things to think about, especially with congress people home in their districts for christmas. flight cancellations, three thro four hour delays at philadelphia. daniel baker is c.e.o. of what if there are a bunch of shut in airports in the northeast and these congress people need to get back to washington, d.c.? maybe for a vote. are they going to be able to?
1:06 pm
>> that's a big question and it's unknown. this is a big storm and it hasn't even had the full impact in d.c. and new york. and it's going to get a lot worse before it gets better. like you said, there's winds that are looking like 40, 50 miles an hour hitting new york soon and they're seeing tremendous delays. the good news is this isn't the kind of storm that leaves multiple feet of snow and blankets runways and ice. we don't see days and days of cancelingations like past winter storms. some of the delays that they're experiencing in the northeast are just a cascading delay from indianapolis, chicago, dallas. the brunt of the storm hasn't hit the northeast yet. >> chicago, newark, houston, but the effects are -- can be across the whole united states, right? >> that's right. it's going to hit around the evening rush in new york and then continue on for the
1:07 pm
evening. so there's already been 2400 flights that have arrived over 15 minutes late. over 1,045 minutes late. that's cascading more delays through the day. we're showing about 1248 flight cancellations so far. that's not too much in new york, it's dallas, indy, chicago and the numbers will stack up in the northeast and new york this afternoon. the good news is, though, that as long as the airlines push through and take the delays and get people where they want, one to four hours late things will reset. the wind will die down, snow will get cleared and the hope is we'll be on track tomorrow. >> say we're traveling and we went home and want to get back to work and we're hearing about the delays. what should we do? >> if you think you're affected. if you're flying to, from, or, the northeast this evening, either you have to be very patient and willing to accept
1:08 pm
multi-hour delays or go to the airline website and rebook. virtually every airline is offering fee-free changes to anyone affected. if you're ticketed through these, go on line for free without talking and say i'll going to fly on friday or over the weekend. you can have more time where you are, relax and not spend your holiday season sitting in the airport and it won't cost you anything. >> dan baker, great advice. c.e.o. thank you very much. you're looking live at honolulu where president return from tonight to work on the deadlock in d.c. tomorrow. is something he said to speaker john boehner leaving room for compromise? if politicians don't take us over the cliff, will the unions in what is threatening to strike you right in the wallet. share everything.
1:09 pm
share brotherly love. share one up's. mom ? mom ? the share everything plan. lets your family share a pool of data across 10 devices with unlimited talk and text. now get a lucid by lg, free.
1:10 pm
1:11 pm
read the headlines and they say the president is giving up his vacation to negotiate a fiscal cliff deal but is something he said before leaving for hawaii leaving room for negotiations? what are we talking about? set it up. >> the president is heading back to washington to attempt a last ditch effort with speaker boehner to forge compromise to avert the fiscal cliff which will kick in in about six days if nothing's done. those are the headlines. everyone talking about cutting his vacation short. the question is there anything that can be done? they were at an impasse before christmas, the republicans and house imploded and it's a tight spot. i suspect if there's a deal, it will be unpalatable for everyone. >> there was a interchange before the talks broke down. we have the quotes.
1:12 pm
john boehner said to obama, quote, i put $800 billion in tax revenue on the table. what do i get for that? allegedly we understand president obama came back to him and said, you get nothing. i get that for free. you get nothing. >> there were a couple eye-opening quotes. a "wall street journal" story before christmas that went through the timeline of how this happened between painer and the president -- boehner and the president. boehner put the rough knee on the table and the president saying that's what i get out of the gate. you get nothing for that, which was a surprise to the speaker. he said if we go over the cliff, that the president threatened boehner, he said i will use my inaugural address to blame you for tax increases and for the fiscal cliff going overboard. that brings out pretty big guns when it comes to a president's bully pulpit.
1:13 pm
if atlantes to use that to play politics, that's significant. >> i have to bring this up. but how did they get to the point where the speaker tried to bring a vote to his caucus to be rejected? how did they not see that coming in why did he bother trying to bring the vote? >> because there's two different tracks, the big deal everyone was hoping for between boehner and the president. that appears to have totally stalled. boehner had to say what's my plan b? his plan b is a plan nancy pelosi embraced a few months ago. boehner couldn't get enough of his right flank onboard and pelosi was whipping votes against her own plan among democrats to embarrass boehner. so the politics worked out well for pelosi. it's a total mess, dysfunctional and both parties are not covering themselves in glory.
1:14 pm
>> got to leave it there. always good to see you. >> thanks. >> to ed henry in honolulu where the president is set to depart tonight. we got breaking news from the speaker and i believe -- they said we have a couple deals on the table. it's your turn, senate. >> yeah, eric, that's where the ball is going now. but what i think the speaker and maybe majority leader eric cantor are leaving out is the reason all eyes turned to the senate is the speaker can't get the job done thursday on plan b. plan a is essentially the big deal, the $4 trillion debt plan. i was speaking a short time ago to a white house official that happened they believe the president moved halfway towards the republicans starting at only want to go raise taxes on $250,000 and above. he moved that goalpost to $400,000 or more. speaker baner was far away
1:15 pm
saying it should be $1 million . he brought it up and had to pull it back. there is frustration among the president's aides, jumping through hoops, trying to get a deal. now the president is on vacation in hawaii and there's been no progress. everyone went home for the holidays. >> i want to get this in. i have to ask, a lot of people were surprised the president announced he would come back from vacation. when did you know he was going to do that? >> we've known for at least two or three days it was likely he would come back. he wanted to spend time with the family and go to the marine base as a christmas tradition, to thank the troops for service. but they knew quickly after christmas he would have to get back. the optics awoke horrible would be horrible if we go off the fiscal cliff. not just taxes but 2 million
1:16 pm
people unemployed are about to lose unemployment insurance if there's no deal. the final point is that i was pressing a white house official a few moments ago. the president's going back tonight. what is on his agenda? what can he do differently that he couldn't do on the phone in hawaii and they're telling us they have nothing on the schedule. they don't know if he's going to bring republican and democratic leaders to the white house. he gets in thursday morning. does he do it thursday afternoon, evening, wait until friday? bottom line is the clock it ticking. every lever the president pulled here hasn't worked yet. >> ed, thank you so much. the president's reported i get that for free comment not sitting well with grover norquist who joins us now. let me stay on this other thing, they've known a couple days the president would like likely life hawaii and dropped into washington, d.c. and save america from the fiscal cliff. how does the president win this
1:17 pm
optics war, grover? >> well, it's all politics. he's not put a proposal on the table that makes any sense. when talk about plans a, b, and c, the republicans have passed plan a, the ryan bill, ryan budget and plan. that saves $6 trillion over the next decade. it reforms entitlements. it reforms taxes. doesn't raise them, reforms them without raising taxes on people. so that's a plan that's written down that's passed the house of representatives and has strong support among republicans in the senate. the alternative is nothing. >> we know that's not going to pass the senate and we also know the white house isn't going to sign that. move on. my contention is after -- >> allow me. >> work with me. it's an important question. let's say president obama says we're going off the fiscal cliff. we go off the cliff.
1:18 pm
tax cuts expire, sequestration, they kick it down the road. if president obama then says i'm going to put in tax cuts for anyone making under $250,000 a year. i'm going to call them obama tax cuts. will runs say no to voting for a tax cut? >> well, the interesting question is of course what this comes with. we're at the beginning of a conversation not at the end of a conversation. because we have to decide what to do with the bush tax cuts. that's one thing. we have to decide to do -- what to do with a trillion dollar of obamacare tax increases. very few people are talking about this but there's a trillion dollars of tax increases obamand ad demonstration passed before the last election and 90% of those hikes were delayed until after the president got himself reelected. then we have massive spending, $8 trillion in debt that obama's running up the next decade.
1:19 pm
republicans have several tools. right now we have very well leverage in the debate over the fiscal cliff because that stuff happens automatically but the idea of a debt ceiling increase, they've told obama if you want a trillion dollars in higher debt and he needs that eight times in the next decade, you have to cut spending a trillion dollars. >> here, i'll ask you again. 0 i'm a republican congressman and i signed your tax pledge to not raise taxes. if someone says here's a bill that says if you sign this we will cut taxes for 98% of americans. how could you say no? my point is, the administration is winning the war of optics. if they played it out this way, do they not win? >> well, they've won the war of optics so far because everything's been done in camera. it's been done inside closed walls. if c-span and fox and -- were
1:20 pm
able to videotape the negotiations, the kind of thing we're learning now about how obama said i have no interesting in cutting spending, he's been lying for two months about his negotiationing position in the room. if people knew that, there would be serious unhappiness in his lack of seriousness with cutting spending. if the negotiations were here out are on c-span, the president loses, if we have secret meetings that he gets to explain what happened, he loseses because the establishment press buys his story. >> grover, comment -- weigh in on president obama saying when speaker boehner offered $800 billion in increased revenues and president obama saying no, i get those for free. >> well, we've only been through this three times in 1982, reagan got taken. he put tax increases on the table. democrats took the tax increases.
1:21 pm
spending went up. eight years later bush offered $2 of tax increases for every dollar of -- i'm sorry, $2 of spending cuts for every dollar of tax increase. the cuts never happened. increases did. boehner was offered one to one. not only are phony spending cuts phony, they get smaller each time. >> keep moving the goal post. grover, we have to leave it there. thank you. >> okay. imagine every shipping port from massachusetts to texas shut down. nothing gets in or out. unions mobilizing to strike this weekend. if they don't get their way, will everyone pay? [ male announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis sympto. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day
1:22 pm
can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. celebrex can be taken with or without food. and it's not a narcotic. you and your doctor should balance the benets with theisks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease risk factors suh as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach a intestine problems, such as bleeding and cers, which can occur without warning and may cause death. patients also taking aspirin and the eldey are at incrsed risk for stoch bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides. get help rightway if you have swelng of the face or throat,
1:23 pm
or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit and ask your doctor about celebrex. for a body in motion.
1:24 pm
>> forget the fiscal cliff. how about a container cliff and what it may do to the economy. time's running short and a standoff between long shoreman union workers and companies could cripple the nation. unless they reach a deal they plan to strike this weekend. we reached out but haven't heard back yet. steve moore is here with us. if the strike happens, some estimates say $1 billion per day hit to the economy. >> yeah, there's no question. if you -- you used the right
1:25 pm
word, cripple the economy. the ports in this country are the backbone of our trade, both export and imports and i've read estimates of $100 billion or more comes in and out. so it cook devastating, and reverberate throughout the economy. retailers, wholesalers. food distributors, everybody would be affected by the strike if it goes forward. >> exactly what do the unions want and what is management willing to do? how far apart are the two groups? >> it's interesting. they're not really -- normally in a wage dispute with the union,ettes it's about wages and benefits but in this case it's not. what the unions are objecting to, according to the media reports i've been seeing, is they object to new kinds of work rules and new kinds of efficiencies that the port systems want to put in place to make the ports more productive, lower costs.
1:26 pm
that's happening -- you cover these markets every day. it's happening in every industry in america and they're objecting to putting in machinery, doing things that might take one worker rather than two. it's good for consumers but unions hate it. >> i think back to the hostess strike, the thanksgiving strike that was going to happen on the west coast at the airports during the busy travel times. chicago teachers. unions with relatively few amount of people, workers, laborers, members, are crippling big portions of the american economy. >> the they're riding on a high horse. unions had a good election in 2012 in november. now they want pay back and one politicians in high places, not just the white house but in congress and the state legislatures that will back them in these demands.
1:27 pm
politics enwrapped in this but it's a dangerous situation because not only could it hurt the economy, but also when you industries you were mentioning that are union dominated, thing about the ones that have the heaviest concentration of unions. auto companies, steel mills, postal service. what do they have in common? they're not productive, they're not making money. but this is a dangerous game and the only way they can succeed is the politic route. >> neil: all very reliant on the ports as well. quickly, about a half minute. people are asking obama to step? in. can he do anything. >> his national labor relation board has intervened in a lot of cases so yes. the white house could intervene. they're the ones who elected the president. this is an ongoing story and a dangerous situation and we don't
1:28 pm
know what the outcome will be but it's a damn shame to come right now. >> some of the estimates are 65% of america's international trade may be at risk. thank you very much. a live look now at cleveland, holiday travel nightmare getting worse by the minute. we'll have an update and snap, share, sue, instagram dropping their new policy after user like kim kardashian raised a stink. why is another user in california suing? just no fun to drive. now, here's one that will make you feel alive. meet the five-passenger ford c-max hybrid. c-max says ha. c-max says wheeee. which is what you get, don't you see? cause c-max has lots more horsepower than prius v, a hybrid that c-max also bests in mpg. say hi to the all-new 47 combined mpg c-max hybrid.
1:29 pm
and i'm here to tell homeowners that are 62 and older about a great way to live a better retirement. it's called a reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. it answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. plus, when you call now, you'll get this magnifier with l.e.d. light absolutely free. when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home. and here's the best part -- you still own your home. take control of your retirement today. ♪ ♪
1:30 pm
1:31 pm
as folks dig out, the flight delays delays rack up. nearly 1300 flights canceled so far. mike tobin is at chicago's o'hare with the latest. >> when you talk about the flight cancellations, the hubs of o'hare, atlanta, did not get hit so the megaripple didn't happen. the places that you see the cancel legislations are the destination. ohio, michigan, indiana, stretching all the way to the eastern seaboard. if that city is socked in, there's where the flights are canceled. it's a serious storm. you might have mentioned six people were killed, mostly people who elected to get out on the roadways. these are states like iowa, indiana, central illinois, where more than a foot of snow came on
1:32 pm
down. all of those people who made it to destinations for christmas are trying to get home. between them and home is snow, ice, and gusts up to 50 miles an hour. this is a storm that whipped up tornadoes, 34 in the southern united states. places like churches, fortunately they missed midnight mass. we had several churches destroyed. a lot of structures were destroyed by the force of this storm. hundreds of thousands of people are without power and the storm is still at work steaming up to the eastern seaboard. >> from chicago to philadelphia where 150 flights have been canceled at philadelphia international alone. victoria, the airport spokesperson, the latest on the status? >> hi, we've had upwards of 200 flights canceled today as a result of the weather here and elsewhere.3%f$m we strongly recommend everyone check with airlines on the
1:33 pm
status of their flight weather traveling or picking someone up. >> we hear the storm is headed this way. maybe north of philly, but certainly a lot of flights will be affected coming from the northern corridor. ou expect a lot more? >> we have been affected by weather not only here but elsewhere in the midwest states. a lot of delays, cancellations, delays in arriving and departing flights. we're experiencing rain now here, so our runways are open, our roadways have been treated. so we're clear. >> give travelers a sense of what they should do. daniel baker said call -- actually daniel baker said rebook flights. what would you suggest people do? >> well, three very important things is check with the airline on the status. they're very good at communicating with travelers
1:34 pm
when they adjust the schedule or have to cancel flights. they're communicating directly with passengers. we have a toll free flight information number, 1-800-745-4283 with up to date rifle and departure information and our website has updated travel information on arriving and departing flights. we want people to be safe, take your time, allow yourself enough time to get to the airport to check in. again, if you're a motorist picking someone up we have a cell phone waiting lot with information displayed in the parking lot. >> thank you very much. thank you. >> what if you don't want advertisements. she spoke and they reversed, instagram taking back their
1:35 pm
terms to sell user photos. why is one user still suing? upset with the company for saying your photos stay with them after you deactivate your account. facebook, the parent company, says we believe this complaint is without merit and we'll fight it vigorously. is there a legal battle? let's turn to mercedes cohen and kelly. mercedes, by the way, i take a picture, i want to get myself off instagram and they get i try to get off and they keep my photo. >> if you look at the privacy policy and read the fine print, it says clearly they can change any of the policies, they can change it with or without notice. if you are a user, presumably you accept the changes to the policy. so it's a win-win situation for instagram. hands down.
1:36 pm
when you look at that disclaimer at the very end of the private policy agreement. >> kelly, what about it? do i have recourse? do i sue them? if i win, can millions of others sue them? >> sure. that's what the class action lawsuit is about. i know you're a social media guy. imagine if your picture is posted on instagram and stolen and used as an ad. they profit it off it and it's your picture. it's interesting that now even with what their privacy policy says, they've made changes. when you join instagram and use it, you agree to those terms. when they change it to benefit the company, of course you have a right and cause of action. >> kelly, i know when you go on google and you google information, the company actually uses that data, mines of the data, maybe even sells it. isn't it the same?
1:37 pm
>> it is but facebook had a class action lawsuit about that for advertisements and selling information to companies and i think they settled for $915 million to make it go away. they have to disclose that ahead of time. you have to knowingly agree to that. instagram minors go on there. they cannot agree to any terms but instagram doesn't block them from using it so there's a possibility they'll pay. they have to be careful and user-friendly. when they try to capitalize on you using their site, 80s problem. >> if i'm not mistaken, i can opt out of the privacy deals we thought we were making saying i don't want my images used or sold. can i do that with instagram? >> there's something you can do. i'm not an instagram user but based on information out there, you can opt out. you can opt in or out of the
1:38 pm
lawsuit. there are measures being taken but it's what my father said, once a word is spoken, it's no longer yours to keep. if you have posted a picture, it's really for those who look at. especially because a lot of the social media companies are very sophisticated. they have disclaimers. it's clear you use their site, this is our property and it's up to you to accept changes. if you continue to be a user of the instagram, you're subject to the continuation of a privacy policy change as it becomes certain. it's a big legal battle and they're willing to take it on and chances are they'll win. >> does the fact instagram changed their mind have impact on the lawsuit? >> you're not supposed to get in post remedial measures. fy fall on your property and you
1:39 pm
repair the sidewalk, we couldn't bring it in to show the sidewalk was a problem before but the evolution of the privacy policy that will come in. courts will look that closely. the biggest issue in this particular case is the policy is ambiguous. the spokesperson from instagram saying that's not what we meant. analysts saying that's what it says. how can you opt in or out when you don't know what they're asking to you agree to. >> go ahead, mercedes. >> i mean essentially it's going to be how they explain the private policy change. it looks clear when you look at it and it says this is going to be something that can be subject to change. in terms of advertisements and facebook settling, they settled because litigation costs a lot of money. there's no acknowledgment of wrongdoing. you appellate these, especially our firm represents companies and disclaimer, they do represent facebook. that's something that it's a
1:40 pm
change, it's an issue. >> i'm sure they want this to go away asap. we're going to leave it there. thank you, guys. >> thanks, eric. >> head of all those returns, numbers are out. did christmas shoppers leave retailers down and out? ..
1:41 pm
1:42 pm
the nation's fear of falling is growing. a new poll shows nearly half the
1:43 pm
nation thinks congress and the president will be unable to reach a deal meaning major tax changes for every american. molly, you broke it down. do it one more time. >> taxes going up for almost everyone immediately if we go over the fiscal cliff and it will take a toll on family budgets. the numbers from the tax policy center, for those whose taxes go up, this is the average hit on top of what they already pay. below $10,000, they pay an average of $300 more. down the chart, between 40 and 50,000, they'll pay an extra $1,700. the next set of numbers. 50 to $75,000, they'll have to find an extra $2,300 to send to washington. if you manage to make over $200,000, you send a check to uncle sam for about $14,000
1:44 pm
additionally. the highest wage earners, $500,000 to a million, they'll pay an average of $34,000 more. over a million, the i.r.s. will want you to send $216,000 additional dollars on top of what you already pay in taxes. a wealthy manager says families need to do austerity calculations before big purchases. look at the money you have and the money you'll need and decide if you need that next big purchase. >> thank you for all the good news. the threat of those tax hikes molly was talking about hitting main street. shoppers are steering clear of stores. coincidence? maybe not. the holiday shopping season is on track to the worst in four years. some an analyst call it the lost
1:45 pm
season. star, it has to be -- everyone said the economy was coming around. all of a sudden all we hear about is tax increases january 1st and guess what happens, christmas sales are down. worst in four years. >> that's right. i think a lot of things play into this. one is the fiscal debate. i talked to quite a few conservatives that say just go over the fiscal cliff. the people that get hit hardest are most vulnerable. if we're going to cut the size and scope of government perhaps we should go over the fiscal cliff so people will understand government spending is out of control and may start to ask questions being asked at the kitchen tables of every family, why we see christmas sales so low. they're saying how do we make major purchases?
1:46 pm
people are cutting back in personal lives, they want got to do the same. something else is playing into christmas sales being low. christmas itself is under attack. a lot of christian conservatives believe that if we're going to say happy holiday, perhaps those that think it's any other holiday should support the economy and they're not buying the gifts they used to buy. they do christian efforts locally in churches and talk to families about other things than gifts. >> we always say merry christmas here but stay on this here. if we do go over the fiscal cliff, yes, taxes will go up. molly outlined how much for every income level across the board. >> very hard. >> down the road, isn't it the only way we get our fiscal house back in order? >> that's what i'm hearing and i believe myself is that if -- you know, we're right back down to the law. all plunder and none plunder but
1:47 pm
to insist that only a few should pay is unfair. there's no guarantee wealthy people will keep money in this country. if we have a bloated government, everyone should feel the pitch. half of the country reelected barack obama and that's the half that will find out how much government costs. >> it seems that's where we're headed. can president obama come pack -- back and fix this fiscal cliff? >> no, he's decided he's not going to cut anything, anywhere. it's not a discussion. john boehner put the ball back in his court saying i'll ease up on taxes and he's not willing to cut significant spending. >> thank you very much. fair and balanced. democratic congressman gregory meeks joins me live in the studio. you were feisty on the way in saying you and i are going to to
1:48 pm
getting together on the house floor and sign a deal. no fiscal cliff. >> we have to work it out. it's bad for the country if we don't. i've talked to a number of friends from both sides of the aisle and we are hopeful it gets worked out. >> how can you work it out when the president himself, according to the "wall street journal" said -- speaker boehner came up with $800 billion and he said that doesn't count. >> it's clear we see what the problem is. the problem is, as the speaker indicated before we broke, he thought he had votes. so his plan b. the speaker said, and the majority leader said, i have the votes. we were on the floor of the house waiting for the vote, waiting to see what took place. then there was word there would be no more votes, that the speaker didn't have the votes. i talked to number of colleagues who were upset with their colleagues to didn't support the speaker. >> you're right.
1:49 pm
the whip or whoever counts the vote should never have suggested the vote. back to plan b. if you look at plan b, it was the 2010 senator schumer plan who said tax people making over # million dollars. raise taxes on those people and leave everyone else. it's that plan, all of a sudden dems don't want that one either. >> we don't know what happened. it hit the floor. >> sir, all due respect. >> let me finish. >> the senate says if you pass this, a million dollars and higher, we won't sign that and president obama said he would veto. >> the president moved from his initial position. his position during the campaign was $250,000. but he showed a willingness to move. the speaker, to his credit, wanted to move. the speaker has been trying to move. i think the speaker wants to get a deal but he has to convince the individuals within his
1:50 pm
conference that -- to support him, give him the deal. he's not been able to do that. so we're caught. >> throughout this process it seems president obama has moved to the goalpost. first it was $600 billion then -- remember when the debt ceiling, what started this mess was a breakdown in the debt ceiling negotiation. we were trying to figure out how to fix the debt. supereconomy. >> president obama says $600 billion, boehner was ready to sign and he said make it 800. >> the problem now was the problem we had then about whether or not boehner would have had the votes. the numbers they come to are close now, basically $500 billion. it's close on both sides. so we should be able to get a deal. if boehner could get the support and votes he wants. >> sir, listen, there's a bill sitting in the senate that the
1:51 pm
house already passed waiting for the senate to pass and they said no. >> that -- we're talking about a deal that's fair and negotiated by both sides. boehner has been trying. to his credit. i just wish he would get support from colleagues. >> your side is winning the optics war and i can't figure out how boehner and company handed you the ball. greg meeks from new york, thank you. >> remember the headlines about a state department official resigning overi? why do new reports say he's still working for the government?
1:52 pm
1:53 pm
1:54 pm
>> eric: we just got breaking news. toyota motors, t.m., settled -- according to the friends at the "wall street journal" settled a class action lawsuit about acceleration to the tune of 1.1 billion. we'll keep our eye on that stock tomorrow. we should see active trading tomorrow. think there was outrage over the government initially calling the benghazi attack a spontaneous protest over an expect video? wait until critics hear this. assistant secretary of state who resigned his post over the attack is reportedly still working for government. the other three officials are expected to return to their jobs. mike baker says this is a
1:55 pm
travesty. mike, we thought that the four people were fired or resigned over benghazi attacks and they're still working for government. we thought that, because that's what they told us. not a shock to most people at this stage of the game. washington no, accountability and lack of consequences. it doesn't happen. >> eric: so the assistant secretary of state changed jobs. literally, went across the office and took another desk. >> you are to parse jobs here. this is difficult to get fired from the government.
1:56 pm
as the report pointed out this is a systemic failures. the assistant secretary of state for diplomatic security, where according to admiral mullen and those who wrote the report is where the rubber hit the road. he basically, instead of resigning -- most people think of resigning, you walk out the door and find a new job. the other three are reassigned. put on ice. this is nothing new. i don't want this to sound like the first time this has happened. it's not. >> this reminds me of the fast and furious situation where there were agents in the field along the border. we heard, fired or let go. but holder brought them back to washington, d.c. to work at a desk instead of the field.
1:57 pm
>> they were repositioned. whether it's that or something serious like this where people lost their lives, you get shuffled around. but this is indicative of the way the administration oddly has been dealing with the benghazi pricious the start. there is an inability to speak the truth. everybody thought what they thought, that he is gone. what he did again is a political appointment. he basically handed that in, walked across the hall. other three will end up in other jobs. the secretary of state should have stepped down.
1:58 pm
it's her responsibility. but this story has been about insulating her for the 2016 run. >> eric: we have to leave it there. mike baker, former operative. can't figure out what it takes to fire this. thank you, everybody. see you in a couple minutes on "the five."
1:59 pm


info Stream Only

Uploaded by TV Archive on